Sensex valuation ratio at 3-year high

Sensex valuation ratio at 3-year high

The BSE Sensex is at an all-time high and most analysts believe the recent rally is the beginning of a new bull-run on Dalal Street.

In the past 15 years, the Street has seen three similar rallies -- the dot-com rally in 1999-2000, called the big bull-run from late 2003 to early 2008, and one in 2009, during a recovery from the crisis triggered by the collapse of the Lehman Brothers in 2008.

Is the current Indian market akin to the one in 1998-99, the second half of 2003, or early 2009?

In the past 17 years (the period for which data on quarterly growth in gross domestic product, or gross domestic product, is available), India has seen five deep economic downturns, including the current slowdown, as well as a shallow cut in 2004-05.

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Image: People watching the display board on the facade of the Bombay Stock Exchange.Photographs: Danish Siddiqui/Reuters